Homebuyer Tax Credit Changes

Congress has extended and expanded the homebuyer tax credit. The modifications in the column labeled December 1 – April 30, 2010 became effective when President Obama signed the bill. All changes made to the current credit became effective on the date as well.



Jan 1 – November 30, 2009

Rules are enacted

February 2009

December 1 – April 30,

2010 Rules as enacted

November 2009

First-time Buyer –

Amount of Credit


($4,000 married

filling separate)


($4,000 married

filing separate)

First time Buyer –

Definition for Eligibility

May not have had an interest in a principal residence for 3

years prior to purchase



Current Homeowner –

Amount of Credit

No Provisions


($3,250 married

filing separate)

Effective Date –

Current Owner

No Provisions


Date of Enactment

Current Homeowner –

Definition for Eligibility

No Provisions

Must have used the home

Sold or being sold as a

Principal residence

Consecutively for 5 of the

Previous 8 years

Termination of Credit

Purchases after

November 30, 2009.

(Becomes April 30, 2010 on

Date of Enactment)

Purchases after

April 30, 2010

Binding Contract Rule


So long as a written binding

Contract to purchase is in

effect on April 30, 2010, the

purchaser will have until

July 1, 2010 to close.

Income Limits

(Note: Increased income

limits are effective as of

date of enactment of bill)

$75,000 – Single

$150,000 – Married

Additional $20,000 phase out

$125,000 – Single

$225,000 – Married

Additional $20,000

Phase out

Limitation on Cost of

Purchased Home



Effective Date of Enactment

Purchase by a Dependent

No Provision


Effective Date of Enactment

Anti-fraud Rule


Purchaser must attach

Documentation of purchase

to tax return


Source: National Association of Realtors

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